{"id":7767,"date":"2023-05-12T09:26:35","date_gmt":"2023-05-12T13:26:35","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/job-cuts-at-silvergate-as-crypto-friendly-bank-winds-down-after-ftx-collapse\/"},"modified":"2023-05-12T09:26:37","modified_gmt":"2023-05-12T13:26:37","slug":"job-cuts-at-silvergate-as-crypto-friendly-bank-winds-down-after-ftx-collapse","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=7767","title":{"rendered":"Job Cuts at Silvergate as Crypto-Friendly Bank Winds Down After FTX Collapse"},"content":{"rendered":"
\n

Silvergate Capital, the parent company of now-defunct crypto-friendly bank Silvergate Bank, has announced another major layoff that would impact 230 employees.\u00a0<\/p>\n

In a recent\u00a0filing\u00a0with the Securities and Exchange Commission (SEC), the company said it would have just 80 employees left by the end of the week to manage the liquidation of its crypto-friendly bank.<\/p>\n

\u201cAdditional incremental reductions in headcount are expected to occur on each of June 30, 2023, August 30, 2023 and November 30, 2023 or later,\u201d the filing said.\u00a0<\/p>\n

The La Jolla, California-based company detailed that the remaining employees will \u201cfocus on implementing the Bank Liquidation, preserving the residual value of the Company\u2019s assets and addressing the regulatory and other inquiries and investigations that are pending with respect to the Company and the Bank.\u201d<\/p>\n

Silvergate added that it’s still unable to fulfill its filing obligations, claiming that it doesn\u2019t expect to produce audited financial statements in an effort to minimize costs.\u00a0<\/p>\n

Furthermore, the company said it has sold all of its debt securities, holding funds in excess of what it needs to repay depositors.<\/p>\n

Silvergate was among the lenders hit hardest by the fall of FTX in November last year.\u00a0<\/p>\n

As reported, Silvergate\u00a0suffered a bank run\u00a0following the collapse of FTX and had to sell $5.2 billion of debt securities it was holding on its balance sheet at a significant loss to cover around $8.1 billion in user withdrawals.\u00a0<\/p>\n

Consequently, it incurred a $718 million loss, which reportedly exceeded the bank\u2019s total profits since 2013.\u00a0<\/p>\n

The bank had only $3.8 billion of deposits at the end of 2022, compared to $11.9 billion in 2021.<\/p>\n

Notably, the new wave of layoffs comes as the company let go of another 200 employees earlier this year to navigate a \u201cchallenging macro environment.\u201d<\/p>\n

Crypto Firms Struggle to Find Banking Partners as Crypto-Friendly Banks Fail<\/h2>\n

Crypto companies have been struggling to find new banking partners after the recent banking crisis that saw some of the more crypto-friendly banks collapse.\u00a0<\/p>\n

In early March, Silvergate Bank\u2019s parent company, Silvergate Capital Corporation,\u00a0announced\u00a0that it has decided to wind down the bank’s operations and liquidate its subsidiary.\u00a0<\/p>\n

Just two days after the collapse of Silvergate, SVB Financial Group, one of the most popular lenders to Silicon Valley tech and growth startups,\u00a0failed\u00a0after a run on the bank.\u00a0<\/p>\n

During the same time, Signature Bank, another crypto-friendly bank, was\u00a0shut down\u00a0by US regulators over systemic contagion fears.<\/p>\n

Following the closure of these three of the largest crypto-friendly banks, crypto firms have been left scrambling to find banking partners.<\/p>\n

\u201cRegulators don\u2019t like crypto and even the word decentralization makes them nervous, however, they\u2019re not stupid \u2014 they\u2019ll know that no amount of opaque legalese and strongarming will make crypto go away,\u201d\u00a0said\u00a0Vadim Yarmak, the CEO of blockchain marketing firm PRMR.<\/p>\n

\n

\u201cThe short-term goal is to keep crypto out of traditional banks so that that the idea of crypto doesn\u2019t become normalized.\u201d<\/p>\n<\/blockquote><\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Silvergate Capital, the parent company of now-defunct crypto-friendly bank Silvergate Bank, has announced another major layoff that would impact 230 employees.\u00a0 In a recent\u00a0filing\u00a0with the Securities and Exchange Commission (SEC), the company said it would have just 80 employees left by the end of the week to manage the liquidation of its crypto-friendly bank. \u201cAdditional […]<\/p>\n","protected":false},"author":1,"featured_media":7768,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[243],"tags":[83],"class_list":["post-7767","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto","tag-featured"],"yoast_head":"\nJob Cuts at Silvergate as Crypto-Friendly Bank Winds Down After FTX Collapse | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Silvergate Capital, the parent company of now-defunct crypto-friendly bank Silvergate Bank, 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